Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
8 Cards in this Set
- Front
- Back
|
What must there be for a contract to be formed?
|
For a contract to be formed there must be mutual assent
|
|
|
How does a court determine whether mutual assent has been achieved?
|
To determine whether mutual assent has been achieved, a court will use an objective theory of contracts (What a reasonable person to whom an expression - words or conduct - has been directed would understand the expression to mean)
|
|
|
What if a person uses an expression which he knows or has reason to know the other party might reasonably interpret as an offer or accceptance?
|
There is sufficient manifestation of assent whenever a party uses an expression that he knows, or has reason to know, the other party would reasonably interpret as an offer or acceptance, and the other party does so interpret it
|
|
|
Lucy v. Zehmer
|
Lucy offers to buy Zehmer's farm for 50,000. Zehmer accepts the offer in jest. The two parties work out the terms of the contract. Zehmer writes out the contract on a restaurant check, and Zehmer and his wife sign it. Lucy attempts to enforce the writing. The court held that even if Zehmer did not subjectively intend to sell the farm, the contract is binding because Lucy actually and reasonably believed it to be a serious transaction.
|
|
|
Express Contracts
|
Mutual Assent is explicitly manifested in oral or written words of agreement
|
|
|
Implied-in-fact Contracts
|
promises of the parties are inferred from their acts or conduct, or from words that are not explicitly words of agreement
|
|
|
Implied-in-law Contracts
|
One party is required to compensate another for a benefit conferred in order to avoid unjust enrichment. Implied in law contracts are not real contracts
|
|
|
Example of an Implied in law Contract
|
Doctor sees pedestrian lying in the street unconscious and renders medical services. When pedestrian recovers, doctor bills pedestrian. Pedestrian is liable for the reasonable value of doctor's services under an implied-in-law contract
|
